New regulations governing market access for public air transport in China will take effect on July 1, 2026. The Ministry of Transport issued the Regulations on Operating Permits for Public Air Transport Enterprises under Order No. 10 of 2026, passed at a ministerial meeting on May 22 and published on May 27.
Under the regulations, applicants for a public air transport enterprise operating permit must meet several mandatory conditions. The enterprise must be a legal person established in China with a legal representative who is a Chinese citizen. For passenger and baggage transport, the paid-in registered capital must be at least RMB 600 million; for cargo and mail transport only, at least RMB 400 million. The controlling shareholder and actual controller must be in good financial standing with no major violations in the past three years, and senior management must have relevant expertise and experience.
Applications must be submitted to the Civil Aviation Administration of China (CAAC) with a set of documents, including an application form, business license, articles of association, proof of aircraft and personnel, financial reports, and capital verification reports. After acceptance, the CAAC will consult the regional administration where the main operating base airport is located. If a hearing is requested within five working days of notification, the CAAC must organize it within 20 working days. A decision must be made within six months; if approved, the permit will be issued within 10 days.
The permit must state the enterprise name, main operating base airport, and scope of operation, and is valid indefinitely unless otherwise specified. Operations must stay within the permitted scope, and air operator certification must be obtained before commencing route services.
Procedures for permit changes are also outlined. Changing the enterprise name requires application within 30 days after the business license change. Changes to the main operating base airport or scope of operation require supporting documents and follow approval procedures similar to initial applications. If a business license is revoked, the enterprise must report within 30 days and the CAAC will cancel the permit. Permits cannot be altered, resold, leased, or lent; if lost, a public notice and reapplication are required.
For supervision, the CAAC and regional administrations will regularly inspect whether enterprises continue to meet permit conditions. Events such as changes of more than one-third of senior management within three months, suspension of operations, bankruptcy applications, or changes in the actual controller must be reported within 10 days, and quarterly reports may be required. By April 30 each year, enterprises must submit annual reports and audit reports for the previous year. The CAAC will also establish evaluation indicators for operational quality. Legally independent airlines cannot share enterprise names, codes, tickets, or waybills, except via approved agreements with wholly controlled subsidiaries.
The chapter on legal liability specifies various penalties. Operating without a permit can result in fines of RMB 500,000 to 2 million, with heavier penalties for repeat offenses. Failing to apply for permit changes can lead to fines of RMB 10,000 to 100,000. Concealing information or submitting false materials results in a one-year ban from reapplying; obtaining a permit through deception or bribery leads to revocation and a three-year ban. Late reporting or illegal transfer of permits can also incur fines. Additionally, if an enterprise has low flight operation efficiency, fails to meet flight regularity management requirements, or lacks safety assurance capabilities, the CAAC may suspend expansion applications or restrict its scope of operation.
The regulations will take effect on July 1, 2026, and the original regulations published in 2004 and subsequently amended will be simultaneously repealed.